Liberty Global Sees European Operating Income Down 18% in Q1

Liberty Global Sees European Operating Income
Courtesy of Liberty Global

Liberty Global has announced first quarter 2017 results for its Liberty Global Group and LiLAC Group. European operating income for Liberty Global Group was down 18% year-on-year at $431 million, owing to decreases in operating cash flow (OCF), depreciation and amortization.

“In terms of our European financials, we had a soft start to the year on the revenue front with 2% rebased growth in Q1, mainly due to challenging mobile results in Belgium and the U.K.,” said Liberty Global CEO Mike Fries (pictured). “Consistent with our projection for full-year growth to be back-end loaded again this year, we generated 4% rebased OCF growth in Q1.”

The group added 40,000 new customers, with organic revenue generating units up 40%, with 244,300 net additions.

Fries said first quarter investments in U.K. marketing for Virgin Media’s broadband capabilities, new 4K set-top box and new 4G quad-play offerings should help deliver stronger results in the second half of 2017.

“We continue to anticipate approximately $1.5 billion of OCF for full-year 2017 and are preparing for the hard spin of LiLAC Group towards the end of the year,” said Fries.

Fries said the company had anticipated a challenging first quarter at LiLAC, its Latin American and Caribbean operation, due to comparison against prior year results for Cable & Wireless Communications, which he called an “an anomaly when compared to preceding and subsequent quarters.” Liberty Global completed acquisition of Cable & Wireless Communications in May 2016, which was subsequently incorporated into the LiLAC business.

LiLAC Group saw rebased revenues of $911 million, down 0.8% year-on-year, and rebased operating cash flow of $354 million, down 9.6%. Its operating income for the first quarter was up 130% to $138 million. It also saw a record number of new customers in the period to March 31 this year with 33,000, while organic revenue generating units were up 96.7% with 41,900 additions, driven by broadband.

The world’s largest international television and broadband provider, operating in more than 30 countries, Liberty Global has more than 25 million customers worldwide.

Filed Under:

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Biz News from Variety

Loading